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Premier takes 'cautious' approach to closing Hazelwood

Victorian Premier John Brumby says the Government must adopt a cautious approach when dealing with the possible shutdown of coal-fired power stations.

Green groups have launched a campaign to close part of the Hazelwood Power Station, in the Latrobe Valley, within three years.

It is widely believed to be one of the dirtiest power plants in the world.

Mr Brumby says more details about the future of the plant will be revealed in the Government's climate change white paper, due out later this month.

He says the federal government's decision to abandon its carbon pricing scheme has decreased market security.

"On the assumptions of a reasonable carbon price of $20 plus, Hazelwood would have closed by 2016. But there is now no carbon price," he said.

"Hazelwood is obviously the biggest polluter, so if you were going to reduce emissions and make an abrupt and significant difference to the level of emissions in Victoria, you would obviously need to focus on Hazelwood."